tv MONEY With Melissa Francis FOX Business November 16, 2012 12:00am-1:00am EST
>> for more years. what will happen? what is my crystal ball say about marijuana? what will happen to energy policy? >> to independence on foreign energy sources. >> who will obama a point* to the court? i am told we are going over a cliff. but that does nothing compared to the rate at -- real threat. what will we see? tonight.
>> i am ready for thenext four years because i have my crystal ball i will see what happens. first pundits will scream about the fiscal cliff a series of tax increases going into affect january 1st unless they work out a deal. they will. i can see it. they will meet, press conferences and predict disaster then reach a deal. it will not solve much but then the media will move on. america will continue to go broke. if i too cynical? and no. worse than that says congressman ron paul. predict the fure. >> the future looks good peop know that what we
have today is not workable but short-term the people will not admit we're bankrupt or on the verge of a major major change in our society. but they will destroy the dollar were reinforced to change our system of financing. it could be big. not quite as bad as the soviet system but changes are to come. true bankruptcy means we cannot maintain the empire around the rolled and entitlements $220 trillion so we need to face reality. don't expect solutions to come on january 1st. they will have a dr. debt proposal but ultimately we
will have to face up to the deficit spending and government but not for a while. >> that was designed to technology on willingness to make tough cuts. >> as the cliff was crafted to be so distasteful officials would do anything to avoid it. >> you don't think they will cut military former military are cut entitlements? >> they assume it is so bad they would not to accept it but they are not even talking about cuts. talking $1 trillion over 10 years but not real cts but baseline budgeting teeseven explained that. i hate when you talk that
way because nobody understands that. if i cut it means i spend less but it would you do it means? >> we have already written into the next budget the automatic increase. if it is a $10 billion increase and cut it down at 9 billion that they cut it down we just now increased 9 billion instead of 10 billion. it is done a purpose so people get confused. that is the reason nothing happens. they got away with this horrible sides there was a lot of wealth of the country and they could get along. we will raise subsidies and one versus the other but now
the treasury is there the country is bankrupt and will not admit it and that is why there is a grand and frustration and there's nothing left t divide. >> the focus is it the automatic tax increases force us into the cliff come monday total 55 billion for defense or domestic spending into the future. >> it is a nightmare. >> it is a total disaster to create chaos. >> drive the economy off the fiscal cliff. john: really? one says sequestration may be okay. russ roberts comment not a horrible crisis? >> government spending is 3.8 trillion.
you will cut 100 billion? that is one deck chair on the titanic. john: it is good across the board. >> if their actual cuts. i would do 20% across-the-board but that scares people because they ink let's save the things that are important and cut the things that are not. it is all important. the tax increases sound scarier of 400 billion but we have a $1 trillion deficit. each year we spend $1 trillion more than we take 10. so to raise taxes by 400 billion we have already raised them 1 trillion in the future. it is probably a good idea to say the spending is not a
free lunch. john: and they're not talking about get rid of deductions and make it simpler. >> tax reform is great there is good and bad some deductions would be good some others may be not so good but the limitation to take advantage of the fiscal cliff would be good for the economy to simplify the tax code. john: that means eliminating deductions. i cannot see them agreeing pension contributions, a mortgage, at gillibrand, a charity, earned income tax credit, they will not give that up. >> they could put a cap robbie suggested that is appealing to the democrats
and maybe republicans. john: 20% of the budget and fiscal spending cuts comes from the military. you are not day defense specialist let's bring in benjamin friedman from the cato institute. it is terrible. the republicans are hysterical. >> so is the pentagon but it is 10 percent to bring us to where we were in 2006 which adjusted for inflation was not a crisis year. they have gotten spoiled with years of luxury then when they cut the budget they scream to the heavens. john: leon panetta says it would be irresponsible, senator mccain and gramm, the draconian cuts represent a threat to our
national-security and must not occur. >> it is not the best way but it could be useful o it will force us to make choice we try to be everything. deliver peace and prosperity to pretend every unstable country is the threat to an to bid the stable countries so we may have to reconsider and prioritize. john: obama talked-about the military being forced for things they don't want. i was skeptical but the tanks the pentagon says they have exceeded space and weight and power but the chief of staff warfare has changed we will never see a
straight conventional conflict again but congress insists to buy more? >> it is built somewhere that is politically important it is built in ohio and 70 n. michigan keeps saying by more of them. >> they are talking about cuts than spending will still go 1.6 trillion over 1.8. >> we send a signal we're not mature mature, responsible or acting like grown-ups. it would be great if somebody in washington could take the lead. it is not if the recovery recovery, taxes, borrowing, i learned from milton friedman what you spending the money on? we are not getting value for
what we spend on. john: not food stamps? they are going up sharply. >> that is not the worst thing the government does. john: people that are disabled? >> growing dramatically 87 the country gets a further the more people collect disability. >> the law has been liberalized and it has been interpreted to make it easier. john: the value of government guaranteed mortgages? >> a. are more cautious now i would be more worried about the pensions of the state employee it will be difficult for the federal government not to honor the state promise that is another $4 trillion on top of everything else. we made to many promises cannot keep we have to look closer to our means and spend money more wisely.
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just call this number or visit selectquote dot com. ♪ john: before the election and the libertarians said who cares? both are big bureaucrats. there's not much difference. but one lasting difference comes from obama's appotments to the supreme court that could affect where you attended schools and if you protect yourself with a gun. what should we worry about? let's ask judge santa napolitano -- andrew napolitano. should i worry? >> yes. i would worry at either of them but i would worry far more with president obama
replacing retiring jutices. justice ginsberg who is not well as serious liberal. john: rehab four justices ginsberg and justice breyer both liberal justices. >> justice ginsberg is not well by justice breyer will set there for another 10 years of major permits. if obama replaces justice ginsberg it would be with the% i'd like mind but 30 or 40 years the junior. so you are removing a shy reticent senior citizen for a young aggressive coalition building youngster. that is what you will get. somebody like soda -- sotomayor or jess's
kagan that will set their 30 or 40 years. john: now that is normal. when the republic was created most were passed the average age of death. >> they serve for life. in the modern era they have attempted to control their term during the presidency of the same party that appointed them. to the extent it is a free choice they will. you can expect justice ginsberg will leave the court. i cannot imagine justice kennedy or scalia will voluntarily go. >> justice ghalib is 76, a justice kennedy is 76. >> he is a swing justice. >> they are young.
it is a young 76874 people 80 years old and they leave the court and president obama picks schuer comic quentin, a birdie frank and pelosi. >> i will move to canada. [laughter] if obama literally would replace justice scalia and kennedy with like mind that would change the balance radically and undo the second amendment to read the progressives like it only the government can own guns. john: school choice? >> very little left the supreme court would require you to go to the public school in the neighborhood where you live. john: obama's says even with
your religious believe says abortion is evil you have to pay for it. >> euthanasia and contraception. the president doesn't care about that and wll appoint stices that agree. >> we can anticipate a progressive court filled was sonya sotomayor and elena kagan will be a activist court. john: they can serve through 24 bob luddy. >> fabled look to put to the progressive imprint on the lot of the land. john: do you run a business or create jobs? mcchrystal ball says the next four years
turner to it shows what happens to employment hiring recovered after two years. the current recovery is much slower. why? employers face thousands of pages of rules that makes it scary to expand because no one understands what those say. betsy mccaughey has heard those complaints following the biggest regulation of obamacare. bob luddy makes these. actually bigger and fancier with ventilation systems like restaurants use to take away bad smells.
>> we re making money and expanding but in this a retirement it is difficult because of human resources rules that don't make sense with those regulations coming into the marketplace the department of energy wants to regulate motors over five hp. john: they want to regulate to make them more energy efficient? to carry out part one, whenever that is to conserve the energy resources of the nation? you just want to make money. >> we're constantlytesting finance with the industry organization. john: you try to make it more efficient that will help you sell the fan. >> absolutely. that is the free market.
they don't understd. john: you have been in business 35 years now with a 700 employees it was different before? >> compared to today there was no regulation. now the federal government will being gauged with health care? we don't need their help. >> i have a copy of obamacare. [laughter] john: mine is fresher because i did not read mine. what do they tell you? >> the employer mandate says every employer with 50 workers or more house to provide health insurance though one size fits all plan that will cost twice as much as what to employers
currently off 37 those who have a high turnover will have to get a fancy plans. >> many companies will stop offering insurance. mckinsey and company said over one-third employersre already considering. john: the penalty is cheaper. >> right. the mandated plan adds $1.79 per hour every hour to the cost of hiring and a full-time employer and neurosurgeons it does not matter but intrigue people it does. so employers can stop offering and paid the penalty, they will.
people were getting insurance on the job and had a full-time job. >> we will try to continue covering our workers under self insurance but it will raise the cost for us and employees. john: you may expand a less? >> if the government takes capital you expand less. john: the sens people offshore motors, barings come a filtration they moved offshore? >> many of them have. america should compete with labor cost because modern manufacturing has machine tools but. john: so it is not the cost but the confusion? >> not all.
unionized operations is a big issue but for modern manufacturing is highly capital intensive and labor house to be skilled. we have the most skilled labor and the free world. john: the employee cannot be asked to cover more than 9% of their income in premiums. >> household income. this will be a nightmare. as an employer you have to ask every employee what does your house -- has been the wife make? so if you hire somebody you may want to hire somebody that makes more money so they can contribute more money to the health insurance. it is a nightmare. john: but the health savings accounts the employees have
more skin in the game. >> abell go out of business. the way the law is structured it is almost impossib to get one. all of the plants will be the same. >> and pass to cover drug treatment, psychiatry, contr aception another politician it is at their whim. >> women were told contraception is guaranteed. it is not. the law says your plan will include whatever the current occupant of the white house says you should have. the next should have completely different. who once the president to make these decisions? >> is central problem is individuals and small companies make better economic decisions.
arrested for drugs. 19 seconds. what does my crystal ball show? colorado and washington just legalized week. let's ask former presents psychiatrist theodore dalrymple as pez laws are needed but nick gillespie said they do more harm them good. >> id the dispassionate analysis, any dollars and cents and cost benefit analysis says to the extent they do anything good in terms of iolent of the brought up -- black-market and the disruption of the education policy and medical policy. john: the law creates more problems than it addresses.
john: i agree with him but you don't? >> i do not. a lot of the problems of drug taking is not from the illegality. the biggest problem at the moment is legally prescribed opiates. 2 million people have been turned into attics legally. oxycontin and those sorts of things. >> government is not making hundreds of thousands of arrest over oxycontin but marijuana. do we want a massive federal state local project where fills up the prisons to take time away from necessary purposes? in some people get addicted to a type of drug that does not mean all drugs should be
legal. we don't say because there of politics we should get rid of alcohol. john: we tried that. >> but it did reduce the number of drinkers. >> you lookk at the figures during the prohibition the murder rate went up by 35% but it went up by 85%. it went up by 325%. it went down after irds but had nothing to do. >> the legacy of prohibition was organized crime. it was around the contraband john: a couple of states
legalize beyond medical use that is how prohibition ended. what will happen? >> we are at the beginning colorado and washington and 55% say legalize all aspects production, consumption and use. whatappens next with the administration is difficult. he was against the state's two decide and the supreme court said no with medical marijuana but no reason obama will go into this fight because of marijuana. p will have to although that would be more fun. >> as a typical politician he will try to satisfy both sides. john: without hypocrisy
obama's say yes i in hailed. that was the point*. he is laughing then a few years later he had an online question about medical marijuana. >> i don't know what the says about the on-line audience. [laughter] i don't people to think of was not answering the question. no. i don't think it is the good strategy to grow the economy. john: i smoked marijuana it was great but i will lock you up. >> of the most cynical dimension and he gets a free pass from people who support him but he shows no indication of that he even runs the campaign ad from the herald and kumar
franchise. >> i cannot believe this is part of the official campaign. >> this is barack. are you on board? good. i am counting on you. everybody is. we have to get right for remember im trusting you on this. >> president? sweet. john. [laughter] i enjoyed their movie. but he locks up thousands of people you support the war? >> of course. in england we do not lock up people for possession.
politicians say they are against to maintain the law to prohibit there is no effort in britain to enforce the law. >> the war on marijuana and the federal war is not just wrong but corrupting the moral fiber of the country. the president makes fun of the laws he has prosecuted 800,000 people for possession alone it is not a laughing matter. it is time he catches up with the american people that the majority says marijuana should be legalized. that is the future and in this case obama who hauls out stupid and democratic democratic -- socialist ideals from europe could
of clean energy. >> the most important thing we can do is control our own energy. john: to idea is more clean energy and control it it does sound important. now that obama got four more years zero happen? jerry taylor's today's energy for the cato institute. >> i would like added that could be affordable but without subsidies it would not be there. the wind energy tax crit is disappearing most projects are collapsing. it is more expensive and of not to we would not have to subsidies. john: control our own energy? >> i am not sure what the point* is if our oil came from alaska or texas if of supply a disruption in the
middle east will will disrupt the supply of us as well as them and if an angry foreign country cuts us off the set of buying from them we would play a game of musical chairs to buy from somebody else then displace somebody else. that was the scenario in 1973. it did not reduce impos. it is a global market for go the same reason could grain embargo did not keep it out of the market once you sell it to somebody will go to where the market dictates. john: the front page of the wall street journal the u.s. will overtake saudi arabia by the largest oil producer. john: that is good news. i am old enough to remember president after president promising bring us closer to
energy independence. >> 1980. 1985. 10 years. 2025. >> it is always on the horizon. they're really worried about imports of crude oil and we will still be dependent on foreign crude to seven mostly import from mexico or canada. the president takes credit for the boom of production. >> we have increased will production tthe highest levels in 16 years in natural-gas the highest over decades. john: we? he made it happen and? >> a buy-out for brief firewood say at least he did not screw that up. he could have. john: he said this is off limits. you cannot build the keystone pipeline. >> you could say he has
approved more permit applications than the bush administration but oil production on federal land is up and he did not screw that up. he is opposed to the hydraulic fracturing but so far he held a benign position. in this senate he voted for the law that exempted hydro fracturing from those laws now they're trying to repeal those in the administration will not back them. john: it sounds like he did it but it was people discovering new ways of. >> georgmitchell spent over a decade to figure out ways to improve on hydraulic fracturing and hit the jackpot.
in 2006 everyone believe natural-gas prices would only go higher dow duont moved people to believe there would never come down some people say they know the energy future remember that even of the revolution of hydro-fracking everybody was betting on high prices. even corporations spent hundreds of millions to bet they would skyrocket then it it cratered. the crystal ball is not always correct. john: or sympathetic to the president but he said he will keep doing what he has been doing a. >> building wind turbines coming clean energy sources. mill company profits make
money hand over fist i want to support energy jobs of tomorrow. john: of the technology like wind torso lurk or ethanol had merit it would not need subsidized. if it did not have the economic merit it would not get we have been subsidizing nuclear power 50 years it is still the most expensive and ethanol still cannot compete. it would disappear without the preferences. the tenth and village industry is make us feel better but it will not advance the technologies. we don't et any greater progress. we have seen it time and again. john: jerry taylor from the cato institute. my crystal ball will predict for 30 some years at many
yesterday beater reaches puberty in health care costs more than the international debt will be up to $20 trillion over four years. the mainstream media will say that the democrats didn't accomplish what they thought because they need more time come and of course the republicans have obstructed the progress. i don't think i need a crystal ball to see that. but wait, let me turn is over. there is some good things that happen. more states legalize weed and the feds will start locking up people. gang members find useful work, drug use is no longer cool, and taxpayers save millions. >> i pronounce you both married. stossel: more americans are
married. school choice becomes an issue. bureaucrats couldn't stop it. parents demanded. americans learn practical economics and military spending is lower. that is because the pentag have to ask hard questions like what is our mission? america is no safer. we are richer because we have a simple flat tax and because people finally rise up and say, these rules -- they don't do what he promised. they mostly stop us from doing good, new things. they waste our time and title vii of spiderweb of freedom killing red tape. so these rules will be gone, these complex taxes, too. forty years from now, we will live without those in a prosperous, free country. it says so right here in my crystal